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Camp Resolution threatens lawsuit against City of Sacramento

The city said it plans on terminating its lease with Camp Resolution. In response, camp advocates said they'll sue the city, calling it a breach of contract.

SACRAMENTO, Calif. — On Thursday, new developments emerged in the fight over the future of Camp Resolution.

Camp Resolution is a homeless encampment at Colfax Street and the Arden-Garden Connector in North Sacramento. Established in the fall of 2022 as a ‘self-governing’ camp, the city and a group advocating for the campers, called Safe Ground Sacramento, entered into a lease agreement last spring.

As ABC10 reported,  a little over a month ago, the city said they’re terminating the lease and people living there must move out by May 16. The city said a variance that allows for the camping is set to expire June 1.

Camp Resolution founding member Joyce Williams said all this uncertainty is making her feel “stressed out" and "overwhelmed.”

She and her wife Sharon Jones said the possibility of displacement is taking a toll on all of the nearly 50 people who currently live at the camp.

“I'm overwhelmed and been extremely busy doing everything I can to fight this,” Jones said. “I just think Camp Resolution is the safety and the security we need to get on our feet again. It's given us time to heal from the trauma from being out on the streets.”

Three important developments happened Thursday.

Camp Resolution held a virtual news conference, promising to take the city to court if they follow through with breaking the lease.

“That's when you go to court and you ask a judge, ‘Judge, we have a contract. This contract provides certain benefits and protections to our people. And the city has announced that they're going to terminate that lease. And, judge, we want you to order the city to abide by that contract,’” said Anthony Prince, the attorney representing Camp Resolution and the Sacramento Homeless Union

At almost the same time as the news conference, the city published a letter, saying they’re willing to delay moving people from the site if the camp meets certain conditions. Those include ensuring that all vehicles people are living in are parked on the paved portion of the lot. The letter does not say anything about pausing the termination of the lease agreement. However, the city's website says, "Today, the City of Sacramento notified Safe Ground Sacramento that it would hold off on the termination if various conditions were met."

“Further, representatives of Safe Ground and Camp Resolution must agree to negotiate in good faith starting the week of May 6 to plan for the possible construction of affordable housing on the Colfax site and the provision of alternative, temporary or permanent living arrangements for residents,” the city’s letter said.

Thirdly, Camp Resolution’s attorney replied to the city’s letter. He argues the city shouldn’t be doing any of this because it all constitutes a violation of their contract.

The lease agreement, “provides for automatic renewal of the lease ‘until all residents have been placed in individual, permanent, durable housing.’ The (City’s March 28) Lease termination letter constitutes both a breach and anticipatory breach of the Lease,” Prince wrote.

He’s giving the city a deadline of May 6 to change their mind about breaking the lease. After that, he said he’ll sue.

See the full text of his letter at the bottom of this story. The city’s letter is HERE.

“If the city thinks it's going to simply hand out a piece of paper and clear everyone out Camp Resolution… without a fight, they haven't been paying attention,” Prince said.

On Tuesday, Sacramento Mayor Darrell Steinberg and interim District 2 Councilmember Shoun Thao issued a joint statement about Camp Resolution.

“The stated goal of the organizers of Camp Resolution has always been to obtain permanent housing for its residents,” they said. “Today we propose that the City pursue a real, lasting solution for this group by declaring the Colfax site surplus and exploring the possibility of transferring it to an affordable housing developer like Safe Ground Sacramento or any other qualified organization to build desperately needed affordable housing units. We have begun conversations with Safe Ground and the City team regarding the upcoming closure of Camp Resolution. We ask that both sides work earnestly toward reaching an agreement to use the land for affordable housing units and accommodate the current Camp Resolution residents in safe, temporary shelter during this process.”

Anthony Prince’s May 2 response letter to the City of Sacramento says:

To The City of Sacramento:

As you are aware, this office represents the residents of Camp Resolution, expressly identified as parties to and intended beneficiaries of the Lease Agreement between the City and Safe Ground Sacramento, Inc. which became effective on April 3, 2023.

We previously advised the City of Sacramento that unless Assistant City Manager Mario Lara’s letter of March 28, 2024 terminating the Lease is rescinded by May 9, 2024, we would file an action against the City for breach of contract seeking specific performance of the Lease including Lease Term No. 2 (“TERM”) which expressly prohibits the City from closing Camp Resolution until all residents are permanently housed.

However, this is to inform you that due to recent developments adverse to the interests of my clients, the deadline for rescission of the Lease termination letter is now close of business, May 6, 2024.

In an effort to avoid litigating this matter, the Union hereby identifies the principal contractual and legal issues in this dispute which include Lease Term Nos. 2 , 17, 25, 30 and 34, all of which have been violated by the issuance of the March 28, 2024 lease termination letter.

Lease Term No. 2 (“TERM”) provides for automatic renewal of the lease “until all residents have been placed in individual, permanent, durable housing.” The Lease termination letter constitutes both a breach and anticipatory breach of the Lease.

Lease Term No. 17 (“COMPLIANCE WITH LAWS”) charges Lessee Safe Ground Sacramento, Inc. – and not the City of Sacramento - with the responsibility and authority, inter alia, to obtain “all governmental permits relating to its use and operation of the Premises as required by applicable Environmental laws.” Thus, Term No. 17 clearly contemplates and applies to the zoning variance granted by the Central Valley Regional Water Quality Control Board (“Water Board”) now set to expire on June 1, 2024.

To the extent that the City of Sacramento is using the expiration of the variance as justification for terminating the lease, the City is bound by the language of Lease Term No. 25 (“Termination, Breach and City Remedies”) which does not permit the unilateral termination of the lease for the reason set forth in Mr. Lara’s letter, but rather sets forth a mandatory process for notification of any breach of the lease and an opportunity to cure. To the extent that the City suggests a breach of the lease, the City’s remedy is limited to issuing a formal notice of breach and providing Lessee with “a reasonable period of time” for Lessee to cure the breach.

During a recent meeting at City Hall, at which this attorney was present, Mr. Lara admitted that it was almost certain that, if asked to do so, the Water Board would grant an extension of the variance. In any event, the City is prohibited from unilaterally determining that the expiration of the variance, standing alone and by operation of law, without more, renders the premises uninhabitable so as to justify terminating the Lease. To repeat, the City is obligated under the terms of the Lease to permit Safe Ground Sacramento the opportunity and a reasonable period of time to resolve the variance issue, one way or the other. (Indeed, over the last year the Homeless Union has repeatedly suggested to the City numerous ways to address and remediate whatever concerns the Water Board may have with regard to conditions at the premises including, but not limited to paving the now unpaved section of the lot, remediating the soil as necessary, or permitting trailers-which sit four feet from the ground, do not have skirts and thus allow for unimpeded airflow.)

Lease Term No. 30 (“Duties and Responsibilities”) expressly identifies “the residents” of Camp Resolution as intended beneficiaries of the Lease. In fact, the entire purpose of the Agreement, as set forth in detail in the “Background” section of the Lease, is to provide a refuge and a staging ground for the provision of permanent housing to homeless persons otherwise exposed to conditions that “threaten [their] physical and mental health.”

It is well-settled contract law that intended beneficiaries generally have standing to enforce an agreement and obtain specific enforcement thereof.

Finally, Lease Term No. 34 (“Venue and Alternative Dispute Resolution”) requires the parties “to submit any disputes arising under this lease to a court of competent jurisdiction located in Sacramento, California.” (Emphasis added.)

Accordingly, therefore, under the Lease terms identified in this letter, as well as pursuant to all available legal remedies provided under state and federal law, we will initiate legal proceedings in a court of competent jurisdiction in Sacramento, California unless on or before the close of business May 6, 2024, the City rescinds the March 28, 2024 lease termination letter and confirms, in a written communication sent to this Law Office and to Lessee Safe Ground Sacramento that Camp Resolution will not be closed and that the residents will not be required to vacate or remove their personal property from the premises on May 16, 2024 or on any other prior or subsequent date certain.

In conclusion, in the same way that the Union, the residents, Safe Ground Sacramento and the City were able to successfully collaborate to create what the City itself has publicly and repeatedly lauded as an unprecedented achievement, it is our hope that we can again work together to address the concerns on all sides regarding Camp Resolution. We are prepared to talk about everything and anything, but not with a virtual gun pointed at our heads and the heads of the those we represent.

We are more than willing to meet but not before the City satisfies the non-negotiable condition precedent of first rescinding in its entirety the lease termination letter of March 28, 2024 in the manner described above on or before the date and time we have set herein. Please also be advised that lessee Safe Ground Sacramento is in complete agreement with the Union’s position.

Very truly yours,

Anthony D. Prince

General Counsel, California Homeless Union/Statewide Organizing Council

Attorney for Sacramento Homeless Union and Residents of Camp Resolution

cc: Safe Ground Sacramento, Inc.

Mark Merin, Esq.

City Manager Howard Chan

Assistant City Manager Mario Lara

City Attorney Susana Alcala-Wood

Mayor Darrell Steinberg

(Editor's Note:  This article has been corrected to state that Safe Ground Sacramento advocates for the residents. The residents' attorney is Anthony Prince.  We also clarified the contents of the City's letter.)

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